Lawsuit: Balboa Capital Corporation Overcharges Customers in Violation of Lease Agreements
by Nadia Abbas
Last Updated on March 27, 2019
ILS Products, LLC v. Balboa Capital Corporation
Filed: March 21, 2019 ◆§ 8:19-cv-00566-DOC-DFM
In a proposed class action removed from state to federal court in California, lending company Balboa Capital Corporation is alleged to have charged customers fees and other amounts not authorized by their contracts.
In a proposed class action removed from state to federal court in California, lending company Balboa Capital Corporation is alleged to have charged customers fees and other amounts not authorized by their contracts.
The lawsuit explains that Balboa Capital Corporation leases commercial equipment to small and mid-sized companies, who the defendant allegedly misleads by providing inaccurate price quotes before doing business together. Once companies contract with Balboa, the defendant delays the start of customers’ lease terms, the case claims, in order to improperly charge extra “rent” in addition to scheduled payments.
“There is no justification for Balboa's withdrawal of ’rent’ that essentially amounts to an extra monthly/quarterly payment beyond the agreed-to monthly/quarterly payments,” the complaint reads.
Further, the suit says the defendant charges various “junk fees,” including a documentation fee and a Uniform Commercial Code (UCC) filing fee. Despite the fact that UCC fees vary across different states and may be as low as $5, the defendant, the suit says, charges all customers a $79 UCC fee regardless of where they are located.
All told, the case asserts that Balboa “pads its bottom line” with illegal charges. Notably, the suit says the Better Business Bureau’s website is “rife with complaints” about the company’s alleged misconduct.
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